| Tue 11 Aug 2009, 8:04 | | LAF - Lonrho Issues New Shares For Cash To Meet Scheduled Rollex Payment |
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LAF
LOLAF
LAF - Lonrho Issues New Shares For Cash To Meet Scheduled Rollex Payment
LONRHO PLC
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
LONRHO ISSUES NEW SHARES FOR CASH TO MEET SCHEDULED ROLLEX PAYMENT
Lonrho is pleased to announce that it has issued 35,277,423 ordinary shares at a
price of 7.047p (equating to 4.415% of the Company) to Altima Global Special
Opportunities Master Fund Limited a fund managed by Altima Partners LLP for cash
to meet an existing obligation under the purchase agreement of its 51% stake in
Rollex (SA) Pty ltd (`Rollex`) announced in April 2008.
Rollex, which was established in 1989, sources, packs and delivers fresh fruit,
vegetables and fish produce from across Africa to its network of high profile
retail clients, including Woolworths, Spar and PicnPay in South Africa, and
Marks and Spencer, Tesco, Sainsbury, World Flowers, TFC Holland and Univeg in
Europe.
The consideration for the 51% stake in Rollex was ZAR40 million (approximately
US$5 million) in cash in April 2008. In addition the contract committed Lonrho
to two further payments linked to the EBITDA performance of Rollex. The two
payments, due respectively after the February 2009 and February 2010 audited
accounts are produced are calculated as Rollex EBITDA multiplied by 5.3 and then
multiplied by 12.75 per cent. The sum outstanding under the agreement for the
first payment is South African Rand 33,551,372 (GBP 2,486,000).
The shares will be issued by the Company Directors under the existing authority
approved at the Company`s EGM on the 9th December 2008.
David Lenigas, Executive Chairman stated:
Although Africa is less affected than the rest of the world, economic
uncertainty remains evident in most markets. The Company had budgeted to meet
this payment from existing funds, however the Board feels that it is prudent for
the Company to maximise current cash reserves in the present economic climate.
Enquiries
Lonrho Plc -
David Lenigas, Executive Chairman +44 (0)20 7016 5105
Geoffrey White, Chief Executive Officer +44 (0)20 7016 5105
David Armstrong, Finance Director +44 (0)20 7016 5105
Emma Priestley, Executive Director +44 (0)20 7016 5105
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375
+44 (0) 7841 672831
Beaumont Cornish Limited (Nomad)
Rosalind Hill Abrahams +44 (0) 20 7628 3396
11th August 2009
South African sponsor
Java Capital (Proprietary) Limited
Date: 11/08/2009 08:04:01 Produced by the JSE SENS Department.
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